The Herfindahl index:

A) measures the prices charged by oligopolistic manufacturers.
B) is another name for the four-firm concentration ratio.
C) tells us whether oligopolistic firms are engaging in collusion.
D) gives much greater weight to larger firms than to smaller firms in an industry.

Herfindahl Index

A measure of market concentration used to gauge the level of competition within an industry by calculating the sum of the squares of the market shares of each firm.

Concentration Ratio

A measure used in economics to assess the degree of market concentration, indicating the market share held by the largest firms in the industry.

Oligopolistic Manufacturers

Companies in an industry where a small number of firms hold a large market share, significantly influencing market dynamics.